China’s Overlooked AI Energy Edge Over the US: Cheaper Energy

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China’s Overlooked AI Energy Edge Over the US: Cheaper Energy - The Diplomat

Quick Summary:

Much attention has been given to semiconductors, but it’s time to look at other elements in the AI supply chain that provide China with an advantage – starting with electricity.

AI companies are already studying Deepseek’s approach to reduce the need for energy consumption.Third, U.S.firms have greater access to funds and are investing in alternative energy sources that would reduce pressure on existing electricity resources.

The United States provides subsidies to fossil fuel suppliers at one-third the level of China and to green energy suppliers at less than one-third the level of China.